Electric Buses Current Affairs - 2020

5,645 electric buses sanctioned for 65 cities: NITI Aayog

According to NITI (National Institution for Transforming India) Aayog an Inter-Ministerial Panel has sanctioned 5645 electric buses for operations in 65 cities and for inter-city operations to 8 state transport undertakings. The announcement in this regard was made by NITI Aayog CEO Amitabh Kant. The move will give huge impetus to automobile sector, clean up cities & drive Make in India intiative.

Niti Aayog has also proposed that all two-wheelers below capacity of 150cc sold in country after March 31, 2025, should be electric only while three-wheelers sold in country after March 31, 2023 should be electric ones.

Steps taken by Centre to popularise Environment-Friendly Electric Vehicles

Tax Rebate: GST Council decided to cut tax rates on e-vehicles from 12% to 5% with effect from 1 August 2019.

In Union Budget 2019-20, Central government proposed additional income tax deduction of Rs.1.5 lakh on Interest paid on loans taken to purchase electric vehicles. Also, certain parts of EVs have been exempted from customs duty to further incentivise e-mobility in India.

FAME II: Centre has also approved Rs.10,000 crore under Phase II of FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) scheme, which aims to encourage faster adoption of such vehicles by right incentives and charging infrastructure.

Government nod must for electric bus supply under FAME India Scheme

Government has made mandatory for Original equipment manufacturers (OEMs) to seek approval from Department of Heavy Industry (DHI) before accepting any proposal to supply electric buses for availing incentives under the FAME India scheme.

The move is aimed at facilitating smooth roll out and management of demand incentives for e-buses under FAME. After DHI gives the nod, OEMs become eligible for the incentives under the scheme.

FAME India Scheme

The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-India) was launched in 2015 under National Electric Mobility Mission Plan (NEMMP) with an aim to promote eco-friendly vehicles in country.

Its objective is to provide fiscal and monetary incentives for adoption and market creation of both hybrid and electric technologies vehicles in the country. It aims at incentivising all vehicle segments, including two-wheelers, three wheeler auto, passenger four-wheeler vehicle, light commercial vehicles and buses.

The scheme covers hybrid and electric technologies like a strong hybrid, plug-in hybrid and battery electric vehicles. Its mandate is to support hybrid or electric vehicles market development and its manufacturing eco-system in country in order to achieve self-sustenance in stipulated period. It is being administered by the Heavy Industries Ministry.